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Wyoming Manufacturing Limited has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct
Wyoming Manufacturing Limited has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour hours (DLHs). The company has two products, Widgets and Trinkets, about which it has provided the following data: Down The firm's estimated total manufacturing overhead for the year is S1.521,960 and the firm's estimated total direct labour-hours for the year is 19,000. The company is considering using activity-based costing to determine its unit product costs. Data for this proposed activity-based costing system appear below: met . Resuired: e. Determine the unit product cost of each of the company's two products under the traditional costing system. (6 marks) f. Determine the unit product cost of each of the company's two products under activity-based costing system (12 marks) Wyoming Manufacturing Limited has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour hours (DLHs). The company has two products, Widgets and Trinkets, about which it has provided the following data: Down The firm's estimated total manufacturing overhead for the year is S1.521,960 and the firm's estimated total direct labour-hours for the year is 19,000. The company is considering using activity-based costing to determine its unit product costs. Data for this proposed activity-based costing system appear below: met . Resuired: e. Determine the unit product cost of each of the company's two products under the traditional costing system. (6 marks) f. Determine the unit product cost of each of the company's two products under activity-based costing system (12 marks)
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